Gold edged higher in early Asian trade, extending gains from Monday after the U.S. and Iran reached an interim peace deal that helped ease global inflation concerns, ANZ Research analysts said.
Spot gold prices are higher and spot silver prices are also sharply firmer after the close Monday, as a tentative U.S.-Iran agreement to reopen the Strait of Hormuz drove crude oil sharply lower, eased inflation fears and pulled Treasury yields down.
Gold settled 2.7% higher and silver rose nearly 3.3%, with both metals up for a second-consecutive session.
Gold has always had a way of testing investors' expectations.
The gold market is seeing some solid follow-through buying at the start of the week, as prices have rallied more than 3% early in the North American trading session.
Gold price outlook turns bullish as the Iran deal drives oil lower, weakens the dollar, and supports Fed easing hopes.
Gold prices saw another turbulent week, as early safe-haven support faded into a sharp midweek selloff after hotter U.S. inflation data, renewed Middle East fighting, and rising Fed rate-hike expectations pushed prices to the $4,000 support level before the yellow metal reclaimed $4,200 on a late-week bounce.
It has been another frustrating week for gold investors, with prices now falling into bear market territory. But beneath the surface, the macro backdrop may be shifting in a way that could eventually turn a near-term headwind into a longer-term tailwind.
Spot gold prices are firmer and spot silver prices are also higher after the close Friday, as oil prices fell on U.S.-Iran deal hopes, Treasury yields ended the week lower and U.S. equities rose into the weekend.
After slipping into official bear market territory this week, gold and silver are starting to attract new attention. But while both precious metals managed to hold critical support, some analysts are saying that investors should only be testing the waters as they wade back in.
Gold prices head for a second weekly loss as Fed hike odds rise, inflation stays elevated, and a Death Cross threatens deeper losses.
Through most of the 2020s, Gold has been one of the best major assets to own thanks to the remarkable rally in the commodity markets, but by mid-2026, the precious metal might have finally found its upper price limits.